Small and midsize asset managers are increasingly posting marketing content such as market analyses and product introductions on their Telegram channels, but there are no rules in place to regulate promotional information. A significant portion of the information investors encounter is promotional, but managers do not classify it as investment advertising and instead upload it as simple information provision.
The Korea Financial Investment Association, which oversees this, says it is unclear how to define Telegram within online advertising categories and that it is difficult to regulate posts recognized by a firm's internal compliance officer. Experts say investor harm from exaggerated or false advertising is a concern and advise that rules or guidelines are needed for information provided through Telegram channels.
On the 1st, according to the financial investment industry, most small and midsize managers, including Shinhan Asset Management, Hanwha Asset Management, and Timefolio Asset Management, are promoting their exchange-traded funds (ETF) and other products using Telegram channels. Large firms such as Samsung Asset Management and Mirae Asset Global Investments do not operate separate Telegram channels.
The problem is that posts these managers upload to their Telegram channels are not subject to specific rules. Market commentary or ETF information provided by managers often does not indicate whether it has received compliance approval.
Generally, advertisements must be posted with review-completed language and investment cautionary language. However, if it is structurally difficult to include such language, as with audio media like radio, banners or pop-up ads online, protruding ads, or promotional items, it may be omitted. Telegram channels can easily include review-completed language, but it has been omitted at their discretion.
An asset management company official said, "Even when sharing an article, if we add interpretive language or include a sentence that links it to our own products, it must undergo internal review," and added, "As long as we do not run afoul of the Korea Financial Investment Association's advertising review rules, most posts receive compliance approval."
Telegram channels are effectively in a regulatory blind spot because the association overseeing them does not clearly define Telegram posts. Another asset management company official pointed out, "On Telegram, managers relatively freely post, such as portfolio managers—not securities firm analysts—writing market commentary or including performance," and added, "The association strictly manages Kakao channels and Naver blogs, but Telegram is effectively a monitoring blind spot."
The association said it is ambiguous how to classify Telegram messages. "If it were investment advertising, investment cautionary language would have been posted with it, but if that language is absent, the firm's compliance officer may not have viewed it as investment advertising," it said.
Under the association's rules, online advertising is classified as ▲ pop-up or banner ads, interstitial ads, and text ads on internet websites ▲ email and other electronic mail ▲ text messages (SMS) and multimedia messages (MMS) via mobile phones ▲ other online media that convey intent using information and communications infrastructure.
However, the association has not made a clear determination on how to view Telegram channels. An association official said, "It is unclear whether they are explicitly mobile phone messages or akin to blog advertising," and added, "For now, if a post has received approval from each firm's compliance officer, we do not see it as a major problem."
As a result, there is concern that inadequate rules for managing Telegram channels could lead to investor losses from exaggerated or false advertising.
The association said, "For issues that become matters of concern going forward, we will take measures such as providing guidelines to member firms based on our internal judgment."